Friday, December 11, 2015

Tiny cottage on what may be smallest plot of land in San Francisco goes on sale for whopping $599,000

This article, I hate to say, is very indicative of the white hot real estate market here in the San Francisco Bay area. It does't mean there's no good value properties out there and there's no hope for first time home buyers on a budget because the market won't stay this way forever.

Pricey: The 830-sq-ft cottage in the Sutro Heights area of San Francisco stands on what could be the city's smallest lot but still costs $599,000


  • The 830-square-foot two-level cottage has just gone on the market
  • It has two levels and the two bedrooms are the size of large closets
  • The home may have the smallest lot in San Francisco', according to the agent
  • Despite its diminutive size, its price-tag is a whooping $599,000
  • Realtor says that she's already had 300 viewers


A single-family home in San Francisco that stands on the 'city's smallest lot' has hit the market for a whopping $599,000.

The tech hub regularly tops the list of the most expensive cities to live in, and the expensive 830-square-foot cottage - as large as most one-bedroom apartments - proves the area is not becoming cheaper any time soon.

The 1916 two-bedroom, two-floor white cottage at 544 46th avenue in coveted Sutro Heights stands on a small 644-square-foot plot of land, with a neighbor crowding in on one side.

'There's such a backup of buyers in the $600,000 to $750,000 price range...like thousands and thousands of people who want to buy a place in San Francisco,' she told SF Gate.

'Most people in this price range are lucky if they're going to get a one-bedroom condo with monthly dues. This is a single standalone with no HOA dues. It's an affordable price point that's hard to come by.'

The cottage was once owned by silver baron and city mayor Adolph Sutro, and Stolz thinks it was once used as a workshop.

Those who can overlook the confined space will enjoy the updated open kitchen with stainless steel appliances, granite countertops, chef's island and large, airy windows.

There's also a cute little porch with a view of the surrounding hills and the home is two blocks from Sutro Park.

Stolz says most prospective buyers are couples, single people, or artists looking for work space.

The lucky seller has owned the home for 13 years and moved to (much cheaper) Oregon.

The house is actually not a bad deal for the area - it is $722 per square foot, below the average price in San Francisco of $947, according to Trulia.

In September, an Outer Mission dilapidated 765-sq foot lean-to that would need to be completely torn down and renovated sold for $408,000 - $58,000 more than asking price.

Stolz says she is accepting offers starting on Friday.

Source: Daily Mail, Kiri Blakeley
http://www.dailymail.co.uk/news/article-3353206/Tiny-830-square-foot-cottage-SMALLEST-plot-land-San-Francisco-goes-hits-market-599-000.html

Stand Up Comedian John Mulaney Jokes about Real Estate agents

Hello my friends and happy Friday. 

I found this hilarious video of stand up comedian John Mulaney joking about real estate agents and his home buying experience.


Thursday, December 10, 2015

Getting Rid of Your Private Mortgage Insurance

Here in the Silicon Valley, you don't see too many buyers who are using financing getting hit with Private Mortgage Insurance (PMI) because most buyers in this area, or at least the ones I work with all put at least the 20% down need to avoid PMI, if not more.

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You may think that after you pay closing costs and the real estate agent, the only expense left is your monthly mortgage and maybe some new paint. However, if you made a small down payment, you might also be paying for private mortgage insurance, or PMI.

How to Avoid PMI
In some ways, PMI is beneficial: Without it, lenders wouldn’t be able to lend to buyers who can’t make the traditional 20 percent down payment. On the other hand, PMI can be expensive, and it’s based on your credit score — the worse your score, the higher your PMI.

To avoid PMI payments in the first place:


  • Find a less expensive home. The less expensive the home, the lower the down payment. If you still can’t afford a 20 percent down payment, get as close as you can to help pay off PMI more quickly.
  • Take out an 80-10-10 mortgage. In this arrangement, the buyer agrees to a mortgage for 80 percent of the home value, makes a down payment of 10 percent and takes out a second loan for the remaining 10 percent. These transactions are also known as piggyback mortgages.


How to Remove PMI From Your Mortgage
If you already have PMI on your mortgage, there are a few ways to remove it. First, you need to understand your home’s loan-to-value ratio (LTV), the difference between the amount of your loan and your home’s value. It’s easy to calculate your LTV: Simply divide your loan amount by the value. For example, if you borrow $135,000 for a house valued at $150,000, your LTV would be 0.9, or 90 percent.

Your LTV changes over time, and once it reaches 80 percent or lower, the PMI is no longer a requirement. The easiest way to reach that point is to keep paying your mortgage as planned, but that can take several years. Making extra payments will help you get there sooner.

An increase in your home’s value could also help you get rid of your PMI more quickly, whether it’s due to remodeling improvements or rising home values in your area. Consider getting an appraisal of your property if either of these causes your home’s loan-to-value ratio to drop significantly (remember, in this case, a decrease is a good thing).

If your LTV is below 80 percent, ask your lender to cancel your PMI, making sure to follow their guidelines. If your lender doesn’t approve your PMI cancellation in a timely manner, follow up by sending written complaints that restate your request. Send the letters by certified mail, and keep copies so that you have evidence in case you need to take court action.

Automatic PMI Termination
Under the Homeowner’s Protection Act, your mortgage lender is legally required to cancel your PMI coverage once you pay down your mortgage to 78 percent of the principal, as long as you are up-to-date on your payments and do not have an FHA loan. This act generally applies to homes purchased after July 29, 1999, but there are provisions for mortgages obtained before that date. Check the details to see if the act applies to your loan.

Source: reaaltor.com, Tasha Schroeder
http://www.realtor.com/advice/finance/getting-rid-of-your-private-mortgage-insurance/

Wednesday, December 9, 2015

Holding an Open House? Don’t Make These 7 Huge Mistakes


open-house-mistakesIf you’re selling your home for the first time, you might think of the open house as the point at which your Realtor® waits until you leave, turns into a magician and, with a flick of the wrist, completely transforms the place into something out of Bravo’s “Million Dollar Listing.”

But here’s the truth of it: Your agent isn’t practicing wizardry on the side. And you’re not responsibility-free when it comes to the open house.

In fact, even though you’re not present for the open house (and you never, ever should be, if you want to sell the home), there are still quite a few ways that you can screw it up—and drive away potential buyers.

These seven things will, according to our experts, destroy your chances of a successful open house—and, potentially, the home sale. Are you guilty of them?

1. Leaving your pets behind

This is Fremont, CA, home stager Alice T. Chan’s biggest open house pet peeve.

“That’s an obvious thing,” says Chan, who previously worked as a production designer for HGTV’s “Flip It to Win It” and was co-host and designer for the channel’s “Power Broker.”

Letting them run free is an easy way to annoy potential buyers, who may not like pets and definitely can’t picture themselves living in any home that once housed dogs or cats. Plus, you’ll want to consider the safety of the animals.

“People are going to open the door, and the pets will fly out thinking, ‘Woo hoo, I’m free!’” Chan says.

2. Turning a blind eye to the kitchen

You might be surprised by how many homeowners ignore this entire room when selling.

“Putting dirty dishes in the sink does not make them invisible,” Chan says.

Even if the rest of the home is staged to perfection, a disgusting kitchen will turn off buyers—and that goes for your dishwasher, too. People are nosy (and eager to learn about their maybe-new home). Expect them to open the dishwasher and investigate the fridge during the open house, and prepare your home accordingly: Clean and store your dishes, and clear out any smelly food from the fridge.

The same goes for any other room you think buyers won’t bother checking out, such as the garage, laundry room, or closets. Because guess what? They totally will.

“You’re not selling part of your house; you’re selling all of your house,” Chan says. “You want to make sure everything you’re showing is in showcase condition.”

3. Not hiding your dirty bath towels

Keeping bath towels you’ve used (and intend to use again) tucked out of the way in a closet benefits you twofold: Not only does it make your bathroom look well-staged, but it also keeps them free of dirt and germs from the day’s parade of guests. Instead, swap in a clean set of decorative bath and hand towels for each open house.

“You don’t want (people) wiping their grubby paws on the bath towels you wipe your body with,” Chan says. “That’s just gross.”

4. Cleaning solo

Hosting an open house is a great time to ask yourself: Am I a good cleaner? Really? If the answer to that question isn’t a resounding “yes!” consider hiring a professional.

“Very, very few people are good housekeepers,” Chan says. “If you think you’re going to save $200 on house cleaning because ‘I can do it myself’ … well, if you weren’t doing a good job before, you won’t do a good job now.”

Not only will cleaners scrub all the out-of-the-way spots you might miss (think baseboards and switch plates), they can also help eliminate odors and messes that go back years.

“I’ve worked on houses where it was a complete hellhole, no joke: dogs, cats, smoke, the whole nine,” Chan says. “We had it spit-shined so it would show well, and no one was the wiser.”

5. Not getting a second opinion

After cleaning and staging your home, a blunt-tongued neighbor can be a godsend. Over time, you can get used to smells and odors that can linger, even after a thorough cleaning.

“You need a neutral third party who will tell you like it is, not what you want to hear,” Chan says.

So don’t be offended if they tell you your place stinks—figuratively or literally.

“You’re not in a position to be all ego,” Chan says. “You’re trying to sell your house—and that’s what you need to focus on.”

6. Not maintaining the yard

While it might seem tempting to neglect your side yard, don’t. Not only does a messy yard look terrible, but objects strewed every which way can also be dangerous.

“A garden hose strewn across the yard is a tripping hazard,” Chan says. “Coil it up to make it look nice and organized-looking.”

And unless it’s trash day, keep your bins out of sight. Nothing makes a house less appealing than a pile of trash.

7. Forgetting to stash your drugs (no, seriously)

There’s a reason stagers depersonalize your house. Sure, they want potential buyers to visualize themselves living within its walls—but they also want to remove any ammunition against you during the negotiating process.

One place to look is the medicine cabinet, which should be emptied during an open house.

“You don’t want people knowing your identity. You don’t want people stealing your meds,” Chan says. “And you don’t want them to think, ‘Oh, I know this medication, I know why they need to sell the house,’ because cancer treatment or something. You don’t want people to get information from your house that they can use as leverage.”

The same goes for family photos and things such as walkers and canes: For example, if you’re elderly, they might consider undercutting your price under the assumption that you can no longer take care of your home.

Keeping buyers from learning your personal details isn’t just good staging—it’s good business sense, too.

Source: Realtor.com, Jami Wiebe
http://www.realtor.com/advice/sell/holding-an-open-house-dont-make-these-7-huge-mistakes/

Tuesday, December 8, 2015

Home Sellers: How Your Realtor Does It Better


As you think about selling your home, it may have crossed your mind that you should just sell it yourself. In 2015, approximately 89% of home sellers hired a REALTOR®. What do they know that you don't?

To sell your home yourself, you'll be competing against experts who have more tools and connections than you do. In addition to multiple listing services, broker Websites, real estate Websites, personal Websites, and professional-grade videos and photos, real estate professionals network with each other to sell many homes before they are introduced to the marketplace.

You'll have to perform all the jobs a professional would do for you, along with adopting a professionalism you haven't been trained for, all while holding down your own job. When will you have time to study the market, create a marketing plan, buy advertising, show your home, and negotiate with buyers?

It's no problem for a Realtor when a buyer wants to see your home at any time, but will your boss let you take off in the middle of the day to show your home? Will she allow you to use the company's graphics and editorial team to whip out a top quality listing presentation for you? Will you have the long-term price trends to defend your price to buyers?

You won't know whom you're allowing to see your home. Even if you could arrange a time to show your home to buyers, how do you know they aren't coming into your home to steal your prescriptions or worse?

Serious buyers are vetted through their real estate agents and bankers so only buyers who are qualified to buy your home can be allowed to see it. Do you know how to put a buyer through instant credit checks so you'll know whether or not they're suitable before you let them in your home?

Real estate transactions are rife with opportunities to make legal mistakes. Do you know what you have to disclose to the buyer to be compliant with state laws? If you did add-ons yourself and didn't get a building permit, you might be in violation of city codes that could come back to bite the buyer and you.

Closing in a garage doesn't mean you can add square footage to your home without subtracting market value for no longer having a garage. Your local taxing authority should reassess your home so that the size and amenities match the marketing materials and disclosures you've provided about your home.

Once you have a contract, you have to get to closing and many contracts don't make it that far. The buyer can decline to buy for a number of reasons, including FHA or VA requirements that your home might not meet. An agent can help negotiate problems and make sure every entity in the pipeline is doing their jobs in a timely fashion so there are no bad surprises.

Those are only a few of the many reasons sellers hire real estate professionals.


Source: RealtyTimes, Blanche Evans
http://realtytimes.com/consumeradvice/sellersadvice1/item/40579-20151203-sellers-how-your-realtor-does-it-better

Monday, December 7, 2015

Client Apprecieation Lunch at China Stix in Santa Clara

I just had my holiday client appreciation lunch at China Stix restaurant in Santa Clara yesterday. I want to say THANK YOU to everyone who showed up. I really appreciate it from the bottom of my heart. It was so nice seeing all of you. We had a great time, and Happy Holidays to you All!


















Should You List in January Or Wait for the Spring Selling Season?

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Thousands of homeowners speak to their real estate agent this time of year to consider their sale options — typically for the spring. It takes a few months for the agent and seller to plan and prep to list the home, so starting now makes sense.

Over the years, I’ve asked sellers if they would consider listing their home in January, right after the first of the year. At first, they look at me like I’m crazy. “Who sells a home in the dead of winter?” they ask.

As it turns out, many sellers not only successfully make it happen, but actually end up better off. Here’s why.

Buyers are out 24/7/365

In the past, buyers waited for spring to start their shopping because that’s when the majority of listings hit the market for the spring selling season.

Today’s buyers look at listings all day, every day. They have apps on their phone, get listings texted and emailed to them, and don’t care about the time of year.

They’re looking for inventory, and will buy homes well before the spring. List your home in January, and you will have a captive audience.

Bonuses, inheritances and tax implications

Each year, real estate agents’ phones ring come January. Previously active buyers want to re-engage, and new buyers come out of the woodwork. What causes this yearly phenomenon?

The end of the year often brings family events, financial activities and discussions about gifting for tax implications. Conversations about inheritances and taxes, money and homeownership seem to occur at many families’ holiday dinners.

Additionally, at year’s end, people take stock of their incomes, find out about work bonuses, and start thinking about whether they want to spend another year renting. Buyers start to take a second look at the tax implications of homeownership, too.

Whether it’s a new buyer who moves quickly or a previously active buyer who re-engages, these house hunters are around in January and will look at your home if it’s for sale.

Where’s the competition?

Typical sellers wait until spring to list. There’s no doubt that visible grass, blooming flowerbeds, and a spotlight on outdoor areas make houses more inviting.

But that also means that there might be two or three similar houses for sale in your neighborhood or school district, in your price range. Thus, it changes the supply-and-demand balance.

You’re better off being the only game in town when it’s time to sell. The more homes on the market, the more the buyers spread out.

Buyers shopping in January understand that the home won’t show as well as it does in the spring and summer months. Many of them don’t care. Having photos of your home during these times of year will help them envision it in the warmer seasons.

If you’re a flexible seller — meaning that you aren’t under any time restrictions or time frames to sell, and your home is already in showing condition — consider listing in mid- to late January. You can always control and negotiate your closing deadline with a buyer. If someone falls in love with the home, they may not mind waiting until April to close.

Also, many buyers have been at it for many months (sometimes years). So, come January, they are tired of open houses Sundays and the real estate hunt. This is your target buyer and, in part, they’re why it’s better to list in January than to wait until spring.

Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/list-in-january-or-wait-for-spring-187414/